2 Large Lots, 1 with an old house...

[Martin S.]

So I just got an executed contract, with 10 day inspection of course.

Sarasota, FL - I'd say a B neighborhood a few blocks from Riverview HS...

This is long distance as I live in NYC...

$220k

2 lots next to each other, each are .56 acres. 1 lot has 95 year old house about 1500sf living area, no garage, PLUS an efficiency unit, lol, 400sf. First time I ever heard/saw of an efficiency unit, lol, looks like newish metal roofs on both though...

Taxes are a bit higher because these lots are each at least double what is norm in the area.  $2800 for lot with house (I think is a bit steep), $1400 for vacant lot (kinda high for vacant lot). 

Insurance is going to be a huge issue. I'm betting it'd be at $2k at least, IF i could even find a company to issue a policy on such an old house, I'll get quotes soon... or at least try to get a quote, heh...

Zoning is RSF-2...

My plan. For now, if I close. Fix up house (kitchen, baths, floors) then rent for close to $1500-$1600. But only include half that lot as part of lease, but allow use while its still empty.

I would barely break even in cash flow, but at least there would be a tiny bit of cash flow while I own the property. But, thats $44k down payment + $5k closing costs, and likely $5k-$10k rehab... Rehab costs go to 0% credit card for 1 year... 

What I would want to do is to build, but I'm not sure what to do exactly. 

I think I can actually build 2 houses on each lot, and then rent all of them out. I am looking for cash flow and also appreciation so I could get more loans down the line.

My issues. Just buying this house will take all my cash. I would need loans from there to actually build something. I actually want to do the majority of building myself (gained interest after watching youtube builders) and maybe hire out some help here and there. I dont really know if/how banks would issue loans to DIY builders, or would I need to become a general contractor to make this work...? I'm guessing I would need to get some type of new construction loan, I've read that they are typically 20 year, interest only while building... 

Also, I realize that building takes a long time, and that sucks as I'm a stay at home dad with a 6 month old, but we gotta do what we gotta do for the future of our children... Most likely will have to split some time between having my baby with me while I build, and the other times my wife will have to work out a schedule with my mom and her mom to watch the baby at home while my wife is at work... Luckily my mom is 'retired', BUT crazy, not sure if I would want her to 'teach' my baby anything, lol.

Anyways.

If I were able to build say 1800-2200sf homes under air, with a generous 2 car garage and some SPA, Utility, and open porch spaces to make it actually bigger but keep taxes down, I'd say right now they would be worth $300k each at least. With prices going up, in 2+ years if/when I finish them all they would be over $350k each...

I figured I can probably build them myself at $100k each. Block contruction preferred, I could even do the roof trusses myself or if they aren't too expensive just buy them, I guess I would need a licensed plumber and electrician, but pretty much everything else I can do myself, ohh, other than lay a foundation slab, unless I can learn how to do that cheap myself with maybe some help, lol...

What do you guys think? Am I in over my head, should I just look for already built houses and rent them out? Or maybe sell the vacant lot or something, but then I'd just be stuck with a really old house... Maybe partner with a builder or something, I'd give him 1 lot if he builds all the houses? I dunno, maybe I need a mentor for this deal...